12
Jul
Types of Auto Insurance
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Auto Insurance generally divided into 2 major types (Depending on different country and states administration, it may carry different definition, terms and conditions. Please check with your Auto Insurance advisor before making buying).

1)     Non Comprehensive -  This type of insurance cover the basic needs to allow your car on the road, it only covers a third party liability damage but not your own car. That means should an accident happened and you are in fault, the other parties involved in the accident can carries out claims to your insurance company.  But you are not allowed to make any claim against your insurance company for the damage on your car.  However, if it is not your fault causing the accident, you can claim your vehicle damage from another party.  Non Comprehensive insurance will not cover in the even of your car being stolen or robbed.

2)     Comprehensive -  This type of insurance covered all the parties involved in the accident inclusive yourself regardless who caused the accident.  It is more expensive then the non comprehensive auto insurance.  Comprehensive Insurance auto Insurance will cover in the even of your car being stolen or robbed.

3)     Special purpose – Such as Wind Shield Insurance to protect against wind shield, act of god insurance to cover accident due to natural disaster ( flood, earthquake, typhoon ) or riot.

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12
Jul
Auto Insurance
admin

Auto Insurance is an insurance purchased for vehicles such as cars, buses, trucks, motorcycles, caravan, trailer etc.

The objective of the Auto Insurance is to provide protected against the losses as a result of accidents as well as damages caused by the said vehicle.

It is compulsory for vehicles to have an auto insurance before it can be used on the public road.

Auto Insurance is fixed term and usually renewable yearly.

Before buy an Auto Insurance, you need to understand the following terms:

1)     Premium: The amount of money paid to insurance company in return for a protection.

2)     Sum of Insured:  The amount of money compensate by the Insurance company should an accident happened to the vehicle.

3)     Excess Payment: A fixed amount that you had to pay if a claim made to the insurance company. The excess payment act as a deterrent for policy holder to make insurance claim for small amount of money.

What determines the Insurance Premium Rate?

The factors determine an Auto Insurance Premium are :

1)     Sum of Insured: The higher the amount of insured, the higher the premium paid.

2)     Age of the Drive :  The younger the drive, the higher the premium

3)     Gender: In certain country, female enjoy lower premium.

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09
Jul
Where to find the Best CD Rates ?
admin

CD or certificates of deposit is a fixed term of deposit with a bank with a higher interest than your normal saving account. Fixed term means a period of  3 months, 6 months, 12 months or more. If you withdraw the deposit before the maturity date of the CD, then you will not be able to enjoy any interest payout.

Generally, the longer the maturity period, the higher the interested rate paid. The reason is you are locking up your money for a longer period and the bank will make full use of your money earning higher interest through their mortgage product.

But the economy climate changing everyday and the overnight interest rate between banks does affect the CD rate daily. For example, 3 months CD rate is 0.8% and 12 months CD rate is 1.4% today, should you lock in the 12 months CD in 1.4% today ? That is a very tough question as nobody can predicts what will happen in the future.

As everyone hoping the get the investment return, there are a few methods the get the best CD rates in town.

1) Prepare a spreadsheet with Name of Bank, CD rates for 3 months, 6 months and 12 months respectively.
2) Look through the local daily, Discover Bank advertisement on CD rates.
3) Visit local banks, finance or any leasing or credit unions that offer CD product.
4) Internet is faster and most convenient way to find out the best CD rates offered by Bank, they usually provide detail comparison among their competitors.

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08
Jul
Does Debt Consolidation Affects Your Credit Rating?
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Credit rating is very important as it determines how healthy our financial record is. Having a good rating will provide us channel to faster loan approval, higher loan amount and lower loan interest rate.

On the other hand, if you do not have a good credit rating, you will suffer from getting lower loan amount and paying higher interest rate.

So if you decided to go for debts consolidation exercise, how it will affect your future credit rating is very important.

If you are just consolidate all your loan into a single loan account for easy management or longer payment tenure, it will not affect your credit rating as you still settle the full amount of your outstanding loan.

If negotiating to reduce your debt is part of your debts consolidation plan, you may be penalized with a lower credit rating as you are not able to payback your debts fully. The financial institution force to accept your plan to recover part of the loan amount in return you will have to accept a bad credit score in your record.

However, the damage is not as severe as bankruptcy. As long as you can maintain a good payment record in 3 to 5 years, you will be able to regain your good credit rating status in the future.

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08
Jul
Should I go for Debt Consolidation ?
admin

Before you select debts consolidation process, please take note of the following disadvantages of debts consolidation.

1) Longer Debts Payment – instead of many short term loan, you loan tenure has been extended, that means you are in debts longer.
2) Higher Interested Rate – Depends on your financial rating, you may have to settle with a higher interest rate. You end up paying more than your current loan.
3) More debts in the future – you clear your credit card debts and regain your credit, you may start spending again, that will makes your financial situation worst.

Debts Consolidation Alternative

Is there any alternative to debts consolidation ?

The answer is yes.

First you may want to consult a financial advisor to understand your actual financial health, we called it a financial health check.

Once you understand your current situation, you may negotiate with your current debts holder for a better interest rate, waiver of penalty fees or longer payment tenure.

If you have a numbers of credit card debts, you may want to consider moving the outstanding balance it to a single credit card for better management. There is a lot of credit cards offer low or even free interest rate up to 6 months.

Getting out of debts is a long process, you need both financial support and well as strong mental strength to get you out of trouble.

If you are debts free or your debt is under control now, congratulation! Please control your expenses, do not spend more then what you earn and most importantly, save before you spend.

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